The Korea Land and Housing Corporation (LH) is expected to keep its headquarters in Jinju, South Gyeongsang Province, even after being split into two separate entities. The Ministry of Land, Infrastructure and Transport has clarified that there is no need for relocation, addressing concerns from the local community about potential moves to other regions.
According to the ministry, both new entities resulting from LH's reorganization will remain in Jinju. Since LH has already completed its relocation to the provinces in line with the government's balanced regional development policy, there is no justification for moving to different locations.
An official from the ministry stated, “LH is already an organization that has completed its relocation to the provinces and is not subject to the second round of public institution relocations.”
On September 3, the government announced plans to reform public institutions, deciding to split LH into the 'Housing and Urban Development Corporation,' which will handle land development and housing construction, and the 'Housing and Urban Asset Corporation,' which will focus on housing welfare and asset management. The names are provisional.
This reorganization aims to redefine LH's extensive functions and improve its financial structure. By separating development and supply functions from housing welfare and asset management, the government seeks to accelerate housing supply and enhance operational efficiency.
However, following the announcement of the split, concerns arose within the Jinju community that one of the new entities might relocate to another area. LH had previously planned to move to Jeonju, North Jeolla Province, and Jinju before the merger of the Korea Land Corporation and the Korea Housing Corporation in 2009, but ultimately relocated to Jinju amid local conflicts.
The ministry reportedly considered additional costs associated with building new offices and decided to keep both entities in Jinju. Specific details regarding the roles and functions of each organization, as well as the allocation of personnel and assets, are expected to be included in LH's reform plan, which will be announced later this year.
As discussions about LH's separation focus on improving housing supply speed and financial structure, future debates are likely to center on the distribution of functions between the two entities and the management of debt and assets.
* This article has been translated by AI.
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